Spine device company gets federal subpoena
The federal government has issued a subpoena asking for documents from NuVasive, a company that makes spine devices, NuVasive revealed in a quarterly filing with the Securities and Exchange Commission. The subpoena came from the Department of Health and Human Services' Office of the Inspector General and is related to alleged "improper claims submitted to Medicare and Medicaid."
The bottom line: Receiving a subpoena from the OIG is always a huge red flag. NuVasive, which got hammered by investors for a poor second quarter, did not elaborate further on the subpoena and said it will "fully cooperate with the OIG's request."